EnergyOil & Gas
High Peak Royalties Ltd

High Peak Royalties halts after announcing snap-up of Planet Gas USA and Macquarie Bank funding

The company’s business model is to expose investors to royalty income streams, its chairman Andrew Carroll will outline at this month’s Proactive Investors CEO Session in Sydney next Monday, October 22.

ASX sign at the Australian Securities Exchange
The company is expected to make its return with capital raising news by Wednesday

High Peak Royalties Ltd (ASX:HPR) has entered a trading halt after announcing a transformative acquisition of oil-and-gas royalty recipient Planet Gas USA Inc. for $1 and the pick-up of a US$2.75 million Macquarie Bank Limited financial facility.

The company revealed Macquarie had agreed to assign Planet’s $US15 million facility to High Peak and would fund its acquisition from cash reserves.

READ: High Peak Royalties chairman to explain benefits of royalties to investors at CEO Sessions

High Peak then halted until pre-open this Wednesday, October 17 or until it makes an announcement about capital raising.

High Peak chairman Andrew Carroll called the company’s Planet acquisition a “big step in further growing the company”.

“This acquisition provides strong revenue and earnings ahead of the potential for significantly larger revenues from other assets in the portfolio.

“It also demonstrates High Peak’s technical ability to identify unique opportunities that can be value accretive to shareholders.”

READ: High Peak Royalties' unique model offers low-risk exposure to energy sector

Carroll highlighted the importance of Macquarie’s finance facility, saying: “The Macquarie Bank facility empowers us to consider acquisition of additional revenue-generating additional assets.

“Owning royalties is a proven and highly valued business model and High Peak has enormous potential in the portfolio.

“I appreciate the patient shareholders’ support while enduring the low oil prices and look forward to growth in scale and revenue with stronger prices, and more activity in this phase of the commodity cycle.”

High Peak chief financial officer and company secretary Jarrod White ceased being a director in the company today and held 42,812 fully paid ordinary shares worth $2269.04 at the last-traded price of 5.3 cents.

High Peak Royalties’ chairman Andy Carroll will outline the company’s strategy of securing high-value resource royalties at this month’s Proactive CEO Session in Sydney next Monday, October 22. To register, click here.

Quick facts: High Peak Royalties Ltd

Price: $0.12

Market: ASX
Market Cap: $21.73 m

2 min read